Mondelez downgraded to Neutral from Buy at Rothschild & Co Redburn

Rothschild & Co Redburn downgraded Mondelez (MDLZ) to Neutral from Buy with a price target of $55, down from $71. The company is facing “numerous near-term threats,” including softening volumes and tougher competition in European chocolate, a sluggish U.S. biscuit category and slower growth in emerging markets, the analyst tells investors in a research note. The firm believes dealing with these threats will require Mondelez to reinvest in price pack architecture and advertising, hindering its margin uplift from falling cocoa prices. As such, Rothschild cut the company’s estimates and downgraded the shares.